Figures from the Department of Digital, Culture, Media and Sport have shown that technology startups based in the UK have received a record £5.5billion of foreign investment in the first seven months of 2019. The new statistics highlight the demand for and faith in the UK’s technology sector – especially at the earliest stages of investment. This also represents a higher amount of investment per capita than the US tech sector equivalent.
This record amount of investment from abroad reflects the sentiment that we have seen at IW Capital in the last year or so, with more demand than ever for potentially high-growth investment opportunities and an increased appetite for growth finance from small businesses. While support from overseas provides a welcome boost to tech-based small businesses, domestic investment can offer investors both growth and an ability to support the UK economy and its world leading technology arena.
Small firms also raised a record £6.7bn in equity funding last year, according to the British Business Bank. Meanwhile, bank lending to small businesses fell, with firms across the UK wary of increasing their debt levels. This is where alternative finance could step in to bridge the gap and provide vital funding, through
The small business economy employs over 16 million people in the UK and contributes around £2trillion to the economy each year. There is huge growth potential emanating from the sector within the last decade, including 13 technology unicorns in the last year alone. This demonstrates the latent opportunities that exist in this area with the support of investors, whether through the Enterprise Investment Scheme or other routes of private equity investment.
IW Capital is keen to help SMEs that need assistance to plan for the future and find the right kind of investment in order to help them reach the next level.
To find out more about IW Capital, or for more information on investment and non-executive opportunities, please speak to a member of the IW Capital team today on 020 7015 2250, or email info@iwcapital.co.uk
